These rates are significantly higher than any others currently offered in the market, the Treasury said. There will be a minimum investment of £500 per bond and a maximum of £10,000 per bond per person while investors can also hold bonds jointly though these will also count towards an individuals' limits.

It means a couple could hold £40,000 together, assuming each partner holding £10,000 in a one-year bond and £10,000 in a three-year bond. The Treasury said the bonds would provide a good return for those who have saved all their lives and now rely on their savings in retirement.